Guide to Vacation Accruals and Rollovers for Exempt Employees
The “Vacation Year” starts on January 20 of any year and ends on January 19 of the subsequent year.
Vacation accrues at a monthly rate depending on your years of service. Please refer to the following chart to determine how many hours you should receive per month and annually:
|Years of Service||Amount of Vacation|
|0 to 4||80 hours (6.67 hours/month)|
|5 to 9||120 hours (10 hrs/month)|
|10 to 14||140 hours (11.67 hours/month)|
|15+||160 hours (13.33 hrs/month)|
Hours taken are updated as soon as your supervisor approves your leave report online. If a paper leave report is turned in, your leave balance will be updated by the 1st of the month.
Leave accruals are updated when each payroll is run, which is approximately the 29th of every month.
- In any given year, you will receive 12 accruals. Your first accrual for the new vacation year will always be on 3/1 because that is the first payroll that pays in the “vacation year” as defined above.
The following information is important to know about how Banner “rolls” your vacation balance at the end of the vacation year. The roll happens on the 2/1 payroll, which is the pay period of 12/20 – 1/19.
- Hours are taken from your balance when your supervisor approves your leave report.
- Hours are accrued and added to your year end balance when the 2/1 payroll is posted.
- Balances are rolled. Any balance that exceeds 80 hours at the end of the vacation year will be rolled with a beginning balance of 80, and will be reflected in Banner Self Service on 2/1.
It is important to note that if your balance is close to 80 hours, you must anticipate the accrual that will happen on the 2/1 payroll and factor that in to determine if you will lose any vacation hours.
Jane Doe has worked for ACU for 5 years and has 110 hours of vacation on 12/19. If Jane doesn’t want to lose any vacation, she must take 40 hours of vacation from 12/20 – 1/19, calculated as follows:
|110 (current balance)|
|+10 (accrual on 2/1)|
|–80 (amount of hrs that can be rolled)|
|40 (hours that must be taken so that none are lost)|
Why does vacation roll this way?
The accrual posted on 2/1 is factored into last year’s vacation balance because if your employment terminates, you will be paid for the hours you earn, which indicates in practice that those hours are available for your use as you earn them.
This can best be explained by another example. John Doe is moving from Abilene and must quit his job at ACU. His last day of employment will be on 12/31/2011. John has been here 10 years and has a leave balance of 50 hours. Assuming John has faithfully turned in his leave reports and hasn’t used any vacation from 12/20 – 12/31, John will receive a vacation pay out of 55.07 hours, calculated as follows:
|50.00 (current balance)|
|–0.00 (leave taken from 12/20 – 12/31)|
|+5.07 (Vacation accrual earned from 12/20-12/31)|
|55.07 (Vacation hours to be paid out, max of 80)*|
*Vacation is pro-rated based on the number of business days in that period, not over the typical 31 day period.